MARIMEKKO is cutting a minimum of 20 jobs in Finland.
The Finnish fashion icon announced yesterday it has wrapped up its statutory consultative negotiations with its staff in the country, as well as the corresponding processes in Australia, North America and Scandinavia. The negotiations, it said, made it clear that the re-organisation is achievable with moderate job cuts while creating annual cost savings of about 1.3 million euros.
The company said its re-structuring and streamlining effort will affect up to 52 jobs in Finland, with at least 20 employees set to be laid off and up to 32 offered new or modified positions in the organisation. Elsewhere, the effort is set to lead to the re-structuring of “some jobs”.
The effort was originally initiated to generate annual cost savings of 1.5 million euros by re-aligning business operations with the structural changes accelerated by the coronavirus pandemic, such as the shift of consumers toward online channels. Revamping the organisational structure, competencies and working methods is necessary also to consolidate the company’s future competitiveness and financial position, reminded Tiina Alahuhta-Kasko, the CEO of Marimekko.
“I am deeply sorry that these necessary changes also mean personnel reductions,” she stated in a press release.
“Due to the coronavirus pandemic, our industry is facing the worst crisis in decades. Although megatrends such as digitalisation have been transforming consumer behaviour and fashion industry for years already, the pandemic has significantly intensified these dynamics.”
Aleksi Teivainen – HT